L&G chief scoffs at bid rumours

Legal & General chief executive David Prosser thinks there is more smoke than fire to recent bid speculation linking the life and savings group with an array of possible European suitors.

'I don't think people will do a hostile bid for Legal & General and if anyone was talking to us, with all this noise we would have made a statement,' Prosser said.

The group has reported that first-half pre-tax profits fell £3m to £287m, though operating profits rose 31% to an above-target £231m. The investment management business, which won £5.9bn of new institutional funds, performed strongly and individual UK life and pensions sales rose 12% to £175m.

Prosser blamed a 36% fall in British corporate life and pension sales on legal uncertainties. Technology stocks euphoria also hit ISA index tracker sales, and general market volatility saw a £12m loss on the equity investment portion of Legal & General's Long Term Fund. Earnings per share fell to 3.61p from 4.77p but the interim dividend is lifted to 1.48p from 1.3p.